Project Feasibility Studies
Prior to the actual commencement of the Feasibility Study, the Project Leader should:
- Establish an integrated project team to direct and manage the Feasibility Study. These could be from various spheres of the industry if not in-house available.
- Mobilize key personnel with the appropriate project, HSE, operations development and operation skills to direct any studies undertaken as part of the scope; in particular the mobilization of the project manager’s key directs i.e. engineering, software, and division heads to ensure their availability during key activities during the Feasibility Study.
- Mobilize lead team members, as identified in the previous phase, responsible for conducting the key engineering and implementation planning components of the study.
- Establish the contracting strategy, bidder’s selection criteria and scope of work for external consultants and contractors.
- Assign the scope to the owner’s team, consultants, contractors or external groupings.
Need and Reason
The study should be structured to:
- Demonstrate the technical and economic viability of a business opportunity based on the proposed project as presented in the Business Case;
- Develop only one configuration and investment case and prepare a clear recommendation for the Implementation Phase;
- Define the scope, quality, cost estimate and time of the proposed project;
- Demonstrate that the project scope has been fully optimised to ensure the most efficient and productive use of the capital invested;
- Quantitatively assess the risk/reward profile of the proposed project;
- Ensure no residual or future issues could significantly impact the assessment set out in the Feasibility Study;
- Plan the implementation phase of the proposed project;
- Define the key performance indicators of the proposed project;
- Provide baseline for management, control, monitoring and reporting of the proposed implementation of the project;
- Deliver a Feasibility Study report in accordance with these client standards; and
Deliver a financial model in accordance with set standards.